Trading comes with its risks. But for this risk you take on, the potential rewards are greater.
But what if there was a way you could reduce your risks yet still have the potential to make handsome profits?
The good news is, there is. This trading strategy is known as pairs trading.
So what is pairs trading?
Read on to find out more…
How pairs trading works
The good news is ... ››› more
One of the advantages of trading is that as well as potentially profiting from the rise of a company's share price, you can also make money on a falling share price.
But the key thing here is, what stocks to short?
Let's take a closer look at how selecting which stocks to short can produce the best results…
Shorting stocks based on fundamentals
When trading, you need to decide how... ››› more
Trading successfully all boils down to having a good strategy and sticking to it.
This is why good traders tend to have discipline and patience. And they're prepared to stick with their strategy and wait for it to flag up potential trades.
So how can you go about creating your winning trading strategy?
Here's what you should do…
Step #1: Pinpointing your trading strategy
To ch... ››› more
Many traders love using candlesticks as part of their trading strategy. A candlestick holds a wealth of information.
So how can you use candlestick patterns to work out what the market is going to do next?
One option you have is looking out for a Doji.
So what is Doji? And how can you use it to time your entry into the market?
Read on to find out…
What is a Doji?
A Doji is a... ››› more
When an asset is in freefall, many traders get excited about trying to buy in to profit from the inevitable recovery.
Surely after its mighty fall, a rebound is on the cards?
But if you want to survive and thrive as a trader, this is one thing you should avoid. Your trading account will thank you.
Read on to find out why…
Why you should sit on the side lines when a market is crash... ››› more
One of the most common chart patterns is the head and shoulders formation. As the name suggests, the chart pattern forms a head and shoulders shape and you can use it to unearth potential short trades.
You can also use the chart pattern to find long trades, but this time you need to use its counter, an inverse head and shoulders pattern.
So what is an inverse head and shoulders pattern? What... ››› more
There've been mixed emotions with the ongoing oil crash.
This week, the petrol price dropped 127 cents, and everyone is over the moon!
In fact, when I filled up my car, I saved a whopping R50 and I felt ecstatic.
Yay! Excuse my sarcasm...
But on the other hand, oil dropped an insane 59.74% from $126.69 to $51 a barrel.
And now, it's starting to have a lethal impact on the oil st... ››› more
Trading can reward you handsomely. But don't let the potential gains let you put too much money at risk on one trade.
You need to protect your capital. One of the best ways you can do this is through position sizing.
So what is position sizing? And how can you use position sizing when you trade?
Read on to find out…
What is position sizing?
Position sizing is a trading strategy... ››› more
If a share is on an upward trend and you want to get in on the action, it's probably worth waiting for a pullback. But how do you know when a price pulls back enough to buy in?
Fibonacci retracements are the perfect technical analysis tool to help you find these levels.
Read on to find out how you can use Fibonacci retracements to time your market entry…
What are Fibonacci retracemen... ››› more
When you embark on trading, you need to have a way of looking for trades.
Whether you want to trade shares, currencies or commodities, you'll need some type of system. You can't just randomly put trades on and hope for the best.
There are two main schools of analysis: Fundamental analysis and technical analysis.
So what's the difference between the two? And what's best for trading?
Re... ››› more
Technical analysis can be a rather complex and daunting topic. It's vast. Some of the strategies make quantum physics look easy.
But the good news for you is, start with the most basic aspects of technical analysis and you can use it to your advantage.
One of these most basic aspects is support and resistance.
Read on to find out more…
Using support and resistance when you trade t... ››› more
If you're looking for a trading strategy that can drastically improve your performance in the market, perhaps it's time to do this.
The strategy involves having a close look at every holding in your portfolio then asking yourself a simple question.
This strategy can improve your trading performance.
Let's take a closer look at what you need to do…
Improve your trading success by a... ››› more
Trading draws many people because of the lure of large gains. It's this greed factor that can become the overriding emotion when it comes to trading.
But greed has some bad side-effects attached.
If you want to succeed over the long-term, what should you do?
Read on to find out…
What greed does to traders
There are essentially three side-effects of greed…
It stops y... ››› more
If you want to short sell a share, you want to profit from its share price falling.
By short selling a share, you'll borrow it from an existing owner, pay a fee for the privilege and then sell it back.
You can use a number of trading instruments to short sell. These include single stock futures, contracts for difference and options.
So what are the risks with short selling? And how can y... ››› more
If you're looking to short sell, you want to make money from a share falling in value.
You can do this by short selling financial instruments like single stock futures and contracts for difference.
But how can you spot a share that's about to fall in value? Read on to uncover two tell-tale signs…
Short sell opportunity #1: Companies never off the acquisition trail
Some companies ... ››› more
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